Huawei Accused Of Offering Embargoed HP Equipment To Iran

Chinese telecommunications manufacturing giant, Huawei Technology Co Ltd (SHE:002502), has once again found itself in trouble over allegedly offering to sell embargoed Hewlett-Packard Company (NYSE:HPQ) computer equipment to Iran’s largest mobile telecommunication company in late 2010.

Based on the documents reviewed by Reuters, one of the key Iranian partners of the company allegedly offered to provide 1.3 million euros of Hewlett-Packard Company (NYSE:HPQ) computer equipment to Iran in 2012.

However, the world’s second largest telecommunications equipment maker says neither it nor its partner ultimately provided the Hewlett-Packard Company (NYSE:HPQ) products to the telecom company, Mobile Telecommunication Co of Iran, known as MCI.

The Chinese telecom company that was already considered a potential threat to U.S national security, and was recently criticized by the U.S House intelligence committee for failing to “provide evidence to support its claims that it complies with all international sanctions or U.S. export laws.”

According to Reuters, the 13 pages of the proposal – addressed to MCI – was marked as “Huawei confidential” and had the company’s logo in them. In a statement to the website, Huawei explained that the document was submitted to MCI by Skycom Tech Co Ltd, one of its major local partners.

Huawei Technology Co Ltd (SHE:002502) explained that : “Huawei’s business in Iran is in full compliance with all applicable laws and regulations including those of the UN, US and EU. This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations.”

It appears that the two Chinese companies are in close business ties with common headquarters in China. Interestingly, Skycom employees in Tehran wear Huawei badges.

It is important to highlight that the Chinese telecom giant, in the beginning of 2012, reported a sale of mobile phone tracking equipment to Iranian telecommunication manufacturing companies to ensure “free flow of unbiased information in Iran”. Later in October, the company was criticized by U.S House Intelligence Committee on account of its failure to produce an evidence to back its claim that the company is in compliance with all international trade sanctions in the U.S export laws. Huawei Technology Co Ltd (SHE:002502) had also been accused of entering trade deals with Iraq’s former government.